iPhone comes to the TV at a knock-down price... well kind of...

The future of television is in flux as traditional manufacturers battle hi-tech companies to control the living room, say analysts. The view comes as Sony prepares to unveil the first Google-powered lcd tvs.

Connecting the TV to the web has become a focus among manufacturers and set top box makers vying for market share. Google's emergence has energised things said commentators as has Apple's renewed bid for domination with its TV converter. Apple boss Steve Jobs has famously referred to Apple TV as a "hobby". Its failure to catch on with consumers is something Mr Jobs acknowledged at a news conference in September. "We've sold a lot of them, but it's never been a huge hit," he said.

The new version of the product has been reduced from $299 to $99 but will only allow people to rent content rather than buy it. Initially, it will only offer TV shows from a small handful of providers such as Fox, ABC/Disney and the BBC. "We think the rest of the studios will see the light and get on board pretty fast with us," said Mr Jobs.